IT stocks surge on rupee's weakness

A weak rupee is considered beneficial for IT firms, which export their products to markets across the world, thereby earning higher revenues in rupee terms.ET Online | Updated: June 27, 2016, 11:21 IST

NEW DELHI: Shares of information technology firms surged on Monday after weakness in rupee buoyed investor appetite for these stocks.

A weak rupee is considered beneficial for IT firms, which export their products to markets across the world, thereby earning higher revenues in rupee terms.

The BSE IT index, a gauge of information technology and related firms on the BSE, ended with gains of 2 per cent after the rupee crashed 47 paise against the dollar. The index has slipped 0.34 per cent so far this year .

Shares of HCL Infosystems closed higher by 4.51 per cent while those of Sonata Softwares, HCL Technologies and Tech Mahindra gained between 2 per cent and4 per cent. Among other prominent gainers were Infosys (up 2.57 per cent), TCS (up 2 per cent) and NIIT Technologies (down 1.2 per cent).

The Telecom Regulatory Authority of India (Trai) pulled up Bharti Airtel and Vodafone Idea for warning subscribers of certain plans that their SIM cards would be deactivated if they do not recharge their pre-paid accounts though these subscribers had the minimum required balance.